But on paper you would be increasing your total borrowing. How do they know you are going to pay your debt off rather than just blowing the lot. Plus if it is to pay off credit card debt how do they know you are not going to just rack it up again. That is why debt consolidation is high risk.

Sorry how is it a higher risk if the net result is that the monthly payment is lower than the existing one?

I'm at greater risk of not paying Â£340 a month than I am of not paying Â£485?
Originally posted by theskewbald

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You have a history of poor financial decisions according to your previous posts. There is no guarantee with debt consolidation loans that a borrower will use the 'new' loan to pay off the 'old' one, so you could end up with twice as much debt.

Also, you are forgetting that the sole purpose of banks / building societies are to make money for their stakeholders. They're only interested in profits. If you're paying Â£485 a month to them, what's in it for them to allow you to re-settle at Â£340? They're going to be losing out on Â£145 a month. Not sound business sense.

OK so how come if they give it to 51% of people who apply, a person with a reasonable credit score (above average checked monthly) and an above average salary, with a ten year history with the bank, with no missed payments, is declined?

As has been alluded to already, it's not purely a case of affordability. The bank is also looking at what is the chance of me seeing this money again. If someone came to me to borrow some money to finance money they had already borrowed ontop of money they had already borrowed I would certainly be a bit twitchy about the whole thing. You want to consolidate your loans but also get into more debt by buying a car?

Take it from someone who has been there and got the t-shirt. Stay away from consolidation loans!